Learn About The Relationship Between Bankruptcy And Your Credit In Atlanta, GA
Atlanta, GA residents are often confused about how exactly bankruptcy affects their credit report. Some of the questions that we often hear about bankruptcy and credit include:
- Will bankruptcy ruin my credit?
- Will I ever be able to get a loan again?
- When will my credit score recover?
Because Atlanta, GA residents have so many questions about bankruptcy and credit, we thought we would take a minute to explain this relationship. Spoiler alert: it’s not as bad as most people think.
Will Bankruptcy Ruin My Credit?
To answer the first question, bankruptcy does not necessarily ruin your credit. Fortunately, creditors understand that people make mistakes, especially early in life. This is a situation that most Atlanta, GA residents can bounce back from. If you are thinking about calling an Atlanta, GA bankruptcy firm — like Galler Law — but are worried about the damage to your credit score, we urge you to make the call. Bankruptcy does have consequences, but the consequences of unresolved, unmanageable debt are often much worse.
Will I Ever Be Able To Get A Loan Again?
To put it simply, the answer is “yes” (you can breathe a sigh of relief now). You will likely not get approved immediately after declaring bankruptcy — that is to be expected. However, as we said before, creditors realize that people make mistakes. Many Atlanta, GA residents who declare bankruptcy get approved for loans just a year or two later. Bankruptcy does not have to derail your dream of buying a new car or even a new house.
When Will My Credit Score Recover?
There is a huge misconception that bankruptcies stay on a credit report forever. Thankfully, this is not the case. Chapter 13 bankruptcies stay on your credit report for 7 years. Chapter 7 bankruptcies, on the other hand, stay on your credit report for 10 years. Chapter 13 bankruptcies stay on a credit report for a shorter amount of time because they do require some repayment.
We strongly encourage you to check your credit report years after filing bankruptcy. While a bankruptcy ruling is supposed to drop off your credit report in the timeframes mentioned above, clerical errors have been known to happen. Fortunately, an Atlanta, GA bankruptcy law firm like Galler Law can help you file a dispute and get your credit back to where it should be.
Call A Lawyer If You Intend To File Bankruptcy
Rather than being a permanent mark on your credit report, bankruptcy can be a golden opportunity to turn your financial situation around. If you are thinking about filing for bankruptcy in Atlanta, GA, call an attorney at Galler Law. A bankruptcy lawyer can answer any other questions that you might have about Georgia bankruptcy law.
A good lawyer can also walk you through the filing process. The decision to file bankruptcy should not be taken lightly, but it could help you and your family get back on the right track.